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FOXA or NFLX: Which Is the Better Value Stock Right Now?

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Investors interested in Broadcast Radio and Television stocks are likely familiar with Fox (FOXA - Free Report) and Netflix (NFLX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Fox and Netflix are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that FOXA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

FOXA currently has a forward P/E ratio of 14.66, while NFLX has a forward P/E of 45.67. We also note that FOXA has a PEG ratio of 1.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NFLX currently has a PEG ratio of 2.00.

Another notable valuation metric for FOXA is its P/B ratio of 2.28. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NFLX has a P/B of 20.28.

These metrics, and several others, help FOXA earn a Value grade of A, while NFLX has been given a Value grade of D.

FOXA sticks out from NFLX in both our Zacks Rank and Style Scores models, so value investors will likely feel that FOXA is the better option right now.


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